Ias 1 Essay

617 WordsSep 22, 20143 Pages
International Accounting Standard 1 Presentation of Financial Statements This standard mainly describes the presentation of the general idea or purpose of the financial statements. This standard makes sure that in one entity, its present financial statements can compare with its previous financial statements also with other entities. The standard also includes all the requirements and guidelines to present financial statements. The first thing of this standard is that all the entities should apply this standard to present its financial statements according to the International Financial Reporting Standards (IFRS). For every entity, this standard applies equally no matter the entity itself present its financial statements together or separately like it defined in the IAS 27, which is the Consolidated and Separate Financial Statement. The standard can be applied to both for profit entities or non-for profit entities. However, if a non-for profit entity wants to apply this standard, it has to change some particular items’ description when present the financial statements. Also, if a entity does not have equity such like mutual funds, which is not defined in IAS 32 Financial Instruments: Presentation, or co-operative entities that their capital is not equity, those entities need to adapt the financial statements presentation according to their members’ or unit holders’ interests. Second one is when an entity did every reasonable effort to try to apply the standard however it failed, then the requirements for this entity are impracticable. The material omissions or misstatements of items means the materials can influence the economic decisions of an entity by themselves or together. It usually depends on the material’s size and nature or both of them. Notes are information that shows on the financial statements. Notes give information for readers what

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